Correlation Between Anhui Transport and Sichuan Hebang
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By analyzing existing cross correlation between Anhui Transport Consulting and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Anhui Transport and Sichuan Hebang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Anhui Transport with a short position of Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Sichuan Hebang.
Diversification Opportunities for Anhui Transport and Sichuan Hebang
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Sichuan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote and Anhui Transport is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Anhui Transport Consulting are associated (or correlated) with Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Anhui Transport i.e., Anhui Transport and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Anhui Transport and Sichuan Hebang
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.96 times more return on investment than Sichuan Hebang. However, Anhui Transport Consulting is 1.04 times less risky than Sichuan Hebang. It trades about -0.31 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.39 per unit of risk. If you would invest 981.00 in Anhui Transport Consulting on October 11, 2024 and sell it today you would lose (108.00) from holding Anhui Transport Consulting or give up 11.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Anhui Transport Cons |
| Sichuan Hebang Biote |
Anhui Transport and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Sichuan Hebang
The main advantage of trading using opposite Anhui Transport and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Sichuan Hebang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Anhui Transport vs. Allwin Telecommunication Co | Anhui Transport vs. Nanjing Putian Telecommunications | Anhui Transport vs. Shandong Polymer Biochemicals | Anhui Transport vs. Jinsanjiang Silicon Material |
| Sichuan Hebang vs. Sichuan Fulin Transportation | Sichuan Hebang vs. Dazhong Transportation Group | Sichuan Hebang vs. Anhui Transport Consulting | Sichuan Hebang vs. Shanghai Broadband Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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